Subsidy on petroleum product is not the problem but political corruption

Abuja 27, June 2011: The Publish What You Pay Nigeria Coalition and Zero Corruption Coalition are pro transparency, accountability and anti-corruption civil society organisations.

As believers in the fact that the sole essence of governance is the welfare and security of the people we align ourselves with the position of the Nigeria Labour Congress and the Trade Union Congress on subsidies on petroleum products in Nigeria.

While we are fully aware of the “kleptocracy” in the downstream of the nation’s oils and gas sector, the fact remains that the removal of the so called subsidy in the pump prices of petroleum products as the history of the incessant hike in the prices of these products have shown is not the solution.

Most disheartening for us is the , the communiqué issued recently by the Governors Forum currently chaired by the Rivers State Governor,-Rotimi Amaechi as reported by national dailies calling on the President to immediately hike the pump price of petroleum products in the country. Most embarrassing also is the move to hinge the payment of the N18, 000 minimum wage recently signed to law on the hike. The call by the Governors Forum is anti-people and will only worsen the misery of the long suffering Nigerian masses whose mandate the governors are currently holding in trust.

We condemn the prevalent practice of burdening the Nigerian masses in the name of subsidy removal by successive governments in the country while in the same vein promoting the economic interest of a few powerful people and companies. This practice has consistently widened the gap between the rich and the poor, promote corruption and promoted the culture of designing economic policies with aim of promoting the economic interest of an infinitesimal few.

Rather than calling for the removal of subsidies on petroleum products, the government we expect should turn its attention to the haemorrhage the nation has been suffering in the form of crude export underpayments of USD$553million (N8.295billion) by extractive companies, funds trapped in failed banks (N5billion), the N654billion withheld by NNPC since 2005 for lifting oil, all these reported in the NEITI audit reports of 1999-2004, 2005 and the 2006-2008. When put together Nigeria government is turning a blind eye to the wanton looting of a huge sum of N667.295billion by a few individuals and companies. This amount comparatively is higher than what Nigeria government used in 2010 for debt services in both domestic and foreign debts burden as appropriated in the Nigeria appropriation budget of 2010. All these when put together seems to validate the assertion of former Presidet Olusegun Obasanjo that the present government does not have the political will to fight corruption.

We call on the 7th National Assembly do away with the passive attitude of the 6th National Assembly towards the revelations of the NEITI Audit reports and bring the corruption in the oil sector under the searchlights and prevent the further burdening of the Nigerian masses in the name of subsidy removal and avoid the popular view of Nigerians about the legislature as being complicit in the creation of corrupt climate for multinationals, NNPC and few individuals.

We believe the only way to fight corruption is through a concerted efforts by governments and CSOs, therefore, we will continue to offer our technical assistance to the government in enthroning transparency and accountability in the management of natural resource revenue.

In conclusion, we demand that President Goodluck Johnathan administration should take seriously remedial measures to address the fall outs of the NEITI audit reports from 1999 till date, publish the names of all contractors importing petroleum products to Nigeria, publish the audited account of the NNPC as submitted to the national assembly by the Auditor General of the Federation. Finally, president Goodluck Johnathan should constitute an asset recovery committee (made up of government, private sector and civil society) to urgently make an enquiry into funds trapped illegally in oil and gas companies, NNPC and failed banks.

Signed:

Faith Nwadishi: National coordinator PWYP Nigeria

Babatunde Oluajo: National secretary Zero Corruption Coalition

Auwal Musa Rafsanjani: Executive Director CISLAC